Luxembourg buys Qatar's 35pc stake in Cargolux, Hainan interested

THE Luxembourg government will acquire Qatar Airways' 35 per cent holding in Cargolux on an interim basis while a viable long-term commercial solution is found for the troubled cargo airline, reports Atlanta-area Air Cargo World.

The Luxembourg government remains in discussion with Hainan-based HNA Group, which owns Hong Kong Airlines. HNA made a fresh approach to Cargolux, after losing out to Qatar Airlines 18 months ago. Russia's Volga-Dnepr is also said to be interested.

HNA, owner of six airlines in addition to interests in airport management, logistics, hotels and tourism, last year took a minority stake in Turkey's MyCargo Airlines and is keen to expand.

Qatar attributed strategic differences for its withdrawal, and it is clear that any new investor will face significant challenges. Cargolux, which operates 11 B747-400 freighters and six B747-8Fs, lost US$18 million in 2011.